Agriculture seen as bright spot in uncertain times

ET Bureau|

Sep 27, 2008, 12.50 AM IST

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BANGALORE: India���s agriculture sector could possibly be a bright spot in the economy as the country prepares to counter the adverse effects of a global slowdown, the head of the wholesale banking unit at Kotak Mahindra Bank said on Friday.

���Agriculture was a surprise performer last fiscal and there could be a repeat this year. We have to wait and watch for the busy (harvest) season to begin,��� Shanti Ekambaram said a special session of the CII Women Business Leaders Forum here. The agriculture sector grew by a better-than-expected 4% in 2007-08.

The revival in sales in the two-wheeler segment could also presage a revival of demand, especially in tier-II and rural markets, she said. The farm-loan-waiver scheme would also boost demand in these markets for consumption and production, she added.

While sales of four-wheelers showed a year-on-year decline in August, it rose for two-wheeler makers such as Hero Honda, Bajaj Auto and TVS Motors. The decline in four-wheeler sales has been attributed to rising inflation, higher finance charges and increased fuel costs.

Kalpana Morparia, the head of JP Morgan India, said the US firm was looking at growing its corporate banking and asset management businesses in the country.

���Markets like India and China hold the key to growth. We are open to both organic and inorganic growth opportunities.���JP Morgan would invest $800 million-$1 billion as private equity over the next few years, she added.

Ms Morparia observed that company managements must show empathy for women employees. She said that while women accounted for nearly a third of the recruits at the entry level, in many organisations, the proportion of women at the senior and top management levels dropped to as low as 10-12%.